Lease to Buy BMW: A Smart Way to Drive Your Dream Car
If you are a fan of BMW cars, you might have dreamed of owning one someday. But buying a new BMW can be expensive and out of reach for many people. That’s why leasing a BMW can be a great option for you. Leasing allows you to drive a new BMW for a fixed period of time, usually between 24 and 48 months, with lower monthly payments than financing. You also don’t have to worry about depreciation, maintenance, or selling your car at the end of the lease term. You can simply return it to the dealer and walk away, or choose to buy it at a predetermined price.
Buying your leased BMW is called a lease buyout. There are two types of lease buyouts: a lease-end buyout and an early lease buyout. A lease-end buyout is when you pay the expected value of the vehicle at the end of the lease term. An early lease buyout is when you buy the vehicle before the lease term ends. Both options have their pros and cons, depending on your situation and preferences.
Benefits of Lease to Buy BMW
Leasing to buy a BMW can offer you several benefits, such as:
- You can drive a new BMW every few years and enjoy the latest features and technology.
- You can afford a higher-end model or trim level with lower monthly payments than financing.
- You can avoid the hassle of selling or trading in your car when you want to change it.
- You can save money on maintenance and repairs, as most BMWs come with free maintenance for the first 3 years and 36,000 miles.
- You can have the option to buy your leased BMW at a lower price than the market value, if you love it and want to keep it.
- You can build equity in your leased BMW if its actual value is higher than the residual value at the end of the lease term.
Things to Consider Before Lease to Buy BMW
Leasing to buy a BMW is not for everyone. There are some things you should consider before deciding on this option, such as:
- You will have to pay a higher interest rate than financing, as leasing is more expensive for the dealer.
- You will have to pay extra fees, such as acquisition fee, disposition fee, and lease-end purchase option fee .
- You will have to follow the mileage limit and keep the car in good condition, or else you will face penalties and charges at the end of the lease term .
- You will have to pay sales tax twice: once when you lease the car and again when you buy it.
- You will have to check your credit score before leasing, as most dealers require a minimum score of 700 for leasing a BMW.
How to Lease to Buy BMW
If you are interested in leasing to buy a BMW, here are some steps you can follow:
- Choose a BMW model that suits your needs and budget. You can use the BMW Personal Contract Hire website to find the latest offers and deals.
- Decide how long you want your lease term to be and how many miles you expect to drive per year. The longer the term and the lower the mileage, the lower your monthly payments will be.
- Negotiate with the dealer on the price of the car, the residual value, and the interest rate. The lower these numbers are, the better for you.
- Sign the lease agreement and pay the initial rental fee. This is usually equivalent to one or two monthly payments.
- Enjoy driving your new BMW for the duration of your lease term. Make sure you follow the terms and conditions of your contract and keep up with regular maintenance.
- When your lease term is nearing its end, decide whether you want to buy your leased BMW or not.